The session, titled “Building Robust Pan-African Financial Systems,” explored the innovations and strategies needed to create a more interconnected, efficient, secure, and inclusive financial landscape across the continent.
Harnessing Emerging Technologies
Fatokun highlighted the transformative potential of emerging technologies like blockchain in revolutionizing payments across Africa. He cited a groundbreaking example from Nigeria, where the Nigeria Inter-Bank Settlement System (NIBSS) is collaborating with a local company to integrate blockchain technology.
“This means we can eliminate, not reduce, payment failures,” Fatokun explained. “Imagine a scenario where your card payment fails at a fuel station after you’ve filled your car. Instead of waiting for a manual reversal, the system automatically corrects the issue in real time, significantly increasing payment reliability. When digital payments work seamlessly, adoption will naturally increase.”
Combating Fraud Through Collaboration
In 2023, global losses from fraud reached a staggering $485.6 billion, according to NASDAQ. While fraud cannot be entirely eradicated, Fatokun stressed the importance of collaboration among fintech companies, regulators, and law enforcement to mitigate risks.
“Flutterwave has taken significant steps in this regard by partnering with Nigeria’s Economic and Financial Crimes Commission (EFCC) to equip investigators with the necessary tools to combat cybercrime,” he said. “Strengthening fraud reporting and intelligence-sharing across Africa will be crucial in safeguarding the financial ecosystem.”
The Role of Central Banks in Regulation
As a former director at the Central Bank of Nigeria (CBN), Fatokun played a key role in initiatives like the Bank Verification Number (BVN), which revolutionized digital identity in Nigeria. During the panel, he emphasized the critical role of central banks in reviewing new financial products before they enter the market.
“A well-regulated environment not only prevents bad actors from exploiting the system but also enhances consumer trust in digital financial services,” he noted.
Addressing Foundational Challenges
Fatokun expressed confidence in Africa’s fintech evolution but pointed out that foundational issues like identity verification must be addressed to drive financial access and efficiency.
“In the U.S., for instance, identity verification is straightforward due to Social Security Numbers. Nigeria has NIN and BVN, but many other African countries might not have such systems. Before digital payments can gain widespread adoption, these foundational issues must first be addressed,” he explained.
Africa’s Leadership in Financial Innovation
Other panelists echoed Fatokun’s optimism about Africa’s financial future. Mr. Mustapha Mourahib, a partner at Clifford Chance, highlighted the continent’s advancements in financial innovation, including low default rates on infrastructure financing and leadership in mobile banking and real-time payments.
Mr. Abdirashid Duale, CEO of Dahabshiil, praised the contributions of mobile-first solutions, emphasizing the importance of leveraging cutting-edge technology to develop tailored solutions that enhance financial inclusion across Africa.
Flutterwave’s Commitment to Progress
Fatokun reaffirmed Flutterwave’s dedication to providing reliable payment infrastructure that connects Africa to the global economy.
“The only room that is never full is the room for improvement,” he said. “The progress we see in cross-border payments today is just the beginning—we must keep pushing the boundaries.”
A Vision for the Future
The panel discussion underscored the immense potential of Africa’s financial ecosystem, driven by innovation, collaboration, and a commitment to inclusivity. With leaders like Fatokun at the helm, the continent is poised to build a robust and resilient financial future.